The digitization of payments has accelerated over the last 16 months, and so has the demise of checks. Organizations that still rely on checks for business processes are now recognizing their inefficient nature and looking for a better way to distribute payments. One of these better options is push-to-card payments.
To learn more about how a partnership between Avidia Bank and KyckGlobal is enabling businesses to make push-to-card payments, PaymentsJournal sat down with Cliff Thompson, SVP of Strategic Partnership at Avidia Bank, Max Grande, VP of Product Management at KyckGlobal, and Raymond Pucci, Director of Merchant Services Advisory Practice at Mercator Advisory Group.
What is KyckGlobal?
Avidia Bank’s partnership with KyckGlobal is enabling it to leverage payments as a point of differentiation and provide a next generation experience to bank customers.
KyckGlobal is a digital payments firm that provides a cloud-based payments platform that allows companies to pay individuals however they want to be paid. KyckGlobal works with banks, networks, and businesses of all types to help them access an array of the world’s most popular payment types. This includes both traditional options such as check, wire, and ACH as well as alternative options including push to card, PayPal, and Venmo.
“Imagine getting a real-time disbursement from an insurance claim, and instead of getting that check in the mail, you’re getting a wallet notification saying you just got paid or you’re getting funds in your bank account immediately. We’re that company that unlocks that payment experience,” explained Grande.
Push payments: No longer just for P2P
Today, push-to-card payments provide a real-time payment of funds option to more than 245 million bank-issued debit cards in the United States.
“Conceptually, [push to card] is really straightforward. The consumer essentially provides their card details—their PAN and expiration date—and funds are moved across the major card brands into the linked bank account rather than the traditional one-to-two days for ACH,” said Grande.
Whether they realize it or not, many consumers have already initiated push payments by pushing a deposit to their bank account instantly from a digital wallet like PayPal or Venmo. “Now picture that same experience from getting funds out of that wallet applied to any business vertical. It’s really game-changing stuff,” added Grande.
Ultimately, the immediacy of funds inherent in push-to-card scenarios can provide value in several use cases beyond P2P transactions. From insurance claim payouts to merchant settlements, government disbursements, and more, push payments make it possible for consumers to have a similar instant payment experience in other aspects of their lives.
“As more of those peer-to-peer transactions are kind of sweeping the market and individuals are getting consistent and used to that experience, businesses are starting to get asked the question of why can’t [they] move funds just as fast. And that’s really where our partnership with Avidia and what we’re doing in the market comes into play,” said Grande.
Stacking payment capabilities does not have to be a challenge
A major trend in the payments industry today is stacking payment capabilities with a platform coupled with efficient onboarding. In combination, this leads to a potent offering for financial institutions, technology partners, fintechs, and program managers alike.
“Today, instant and/or real-time money movement is most sought after and certainly takes center stage in the platform payments stack. The KyckGlobal – Avidia partnership allows clients ease of entry into near real-time payment via push to card,” noted Thompson.
Thanks to KyckGlobal’s simplified front-end plan, engagement and onboarding process made possible through API connectivity, and robust underwriting, firms can be making near instant payments in a matter of days. “A short application starts with the completion of a service agreement with KyckGlobal and an automatic creation of a new funding reserve account at Avidia Bank,” Thompson added.
FIs looking to succeed need cutting edge technology
The use of technology – specifically within the payments space is a differentiating factor that banks need to have if they want to remain competitive in today’s market. “At one time, it was only big financial institutions that had resources. And now, technology is available. As we’re talking about the partnership that you have here, there are some new developers that are doing such a great job at making this technology available [for] solutions that everyday financial institution customers are looking for,” said Pucci.
With challenger banks and fintechs taking hold, it is paramount to the success of financial institutions that they explore their roles not only as providers of traditional financial services, but also as technology providers.
“I believe it’s important for financial institutions to understand the gravity of what’s occurring in the tech space today. Technology and payments are colliding with pent-up demand. A responsive, redundant, efficient platform, like the one described here today in our collaboration with KyckGlobal, will prevail to meet that demand,” concluded Thompson.